Hong Kong Stocks Head for 19-Month High on China Exports

By Anna Kitanaka -
Jan 10, 2013

Hong Kong stocks rose, with the
city’s benchmark index closing at its highest in 19-months,
after China’s exports beat estimates.

China Cosco Holdings Co. (1919) jumped 7.3 percent, leading gains
by shipping companies. China Solar Energy Holdings Ltd. surged
28 percent, pacing an advance in the sector after the government
said it aims to more than double solar capacity. Dongfeng Motor
Group Co. and Guangzhou Automobile Group Co. advanced after an
industry group official said mainland vehicles sales may rise
about 5 percent this year.

The Hang Seng Index gained 0.6 percent to 23,354.31 at the
close of trading in Hong Kong. The Hang Seng China Enterprises
Index of mainland companies rose 1 percent to 11,931.47.

Hong Kong’s benchmark index surged 23 percent last year
amid signs China’s economy is improving and as central banks
around the globe added stimulus. Shares on the measure traded at
11.3 times estimated earnings yesterday, compared with 13 for
the Standard & Poor’s 500 Index and 10.9 for the Stoxx Europe
600 Index, according to data compiled by Bloomberg.

Shipping companies and port operators advanced after
China’s General Administration of Customs said the country’s
exports increased 14 percent last month from a year earlier. The
increase, the biggest since May, compared with the 5 percent
median forecast in a Bloomberg News survey and November’s 2.9
percent gain. Imports grew 6 percent after being unchanged in
the previous month. The trade surplus almost doubled from a year
earlier to $31.6 billion.

China vehicle sales, including those of cars and buses, may
rise about 5 percent this year and reach 20 million units,
spurred by a rebound in economic growth and rising incomes, said
Ye Shengji, deputy secretary general of the state-backed China
Association of Automobile Manufacturers.

Among stocks that fell, Towngas China Co. sank 3.8 percent
to HK$6.52. The gas distributor aims to raise about HK$930
million by selling 150 million new shares at HK$6.31 each, the
company said today.